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Electronic Data Interchange EDI

Electronic Data Interchange (EDI) refers to the structured transmission of data between organizations electronically instead of using paper documents. EDI allows computer systems to directly exchange formatted messages that represent documents like purchase orders and invoices. It saves companies money by reducing costs associated with manual data entry and paper documents while also eliminating errors. However, implementing EDI requires changes to existing business processes and incurs initial set-up costs, and companies may be unable to do business with partners that do not use EDI.

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427 views7 pages

Electronic Data Interchange EDI

Electronic Data Interchange (EDI) refers to the structured transmission of data between organizations electronically instead of using paper documents. EDI allows computer systems to directly exchange formatted messages that represent documents like purchase orders and invoices. It saves companies money by reducing costs associated with manual data entry and paper documents while also eliminating errors. However, implementing EDI requires changes to existing business processes and incurs initial set-up costs, and companies may be unable to do business with partners that do not use EDI.

Uploaded by

AbhraDeep Paul-the Unputdownable
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Electronic Data Interchange (EDI)

Presented By:-

ABHRADIP PAUL
What is EDI?

 Electronic Data Interchange (EDI) refers to


the structured transmission of data between
organizations by electronic means. It is used
to transfer electronic documents from one
computer system to another, i.e. from one
trading partner to another trading partner.
 EDI is considered to be a technical
representation of a business conversation
between two entities,
 Definition:- “The computer-to-computer
interchange of strictly formatted messages
that represent documents other than
monetary instruments. EDI implies a
sequence of messages between two parties,
either of whom may serve as originator or
recipient”.
Usage of EDI:-

 It is more than mere E-mail.


 save a company money by providing an
alternative to, or replacing information flows
that require a great deal of human interaction
and materials such as paper documents,
meetings, faxes, etc.
 storing and manipulating data electronically
without the cost of manual entry.
 EDI reduces errors, because EDI eliminates
the need of paper documents on the
destination side.
 EDI can be an important component of just-
in-time production systems.
Barriers to implementation of EDI:-

 Existing business processes built around


slow paper handling may not be suited for
EDI and would require changes to
accommodate automated processing of
business documents.
 Another significant barrier is the cost in time
and money in the initial set-up.
 any partner not willing to use EDI will not be
able to do business with the company.
Thank You

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